Chapter $20$

Show your work for partial credit.

During the first month of operations ended May $31,2020,$ Frost Point Fridge Company manufactured $40,000$ mini refrigerators, of which $36,000$ were sold. Operating data for the month are summarized as follows:

Sales

$$6,480,000$

Manufacturing costs:

Direct materials

$$3,200,000$

Direct labor

$$1,120,000$

Variable manufacturing cost

$$880,000$

Fixed manufacturing cost

$..$ $$500,000,$$$5,760,000$

Selling and administrative expenses:Prepare an income statement for Frost Point Fridge company based on the absorption costing concept for the information given above.